AFRICANGLOBE – The Zimbabwe Stock Exchange (ZSE) which has over $1 billion market capitalisation was ranked Africa’s best performing bourse in January.
ZSE’s industrials index gained 14.83 percent from the beginning of this year while the mining index, whose value was eroded last year, rose to 23. 45%.
The stocks had a solid run since the beginning of the year, lifted by the growing appetite for heavyweight stocks, which include Delta Corporation, Econet Wireless, Innscor Africa Limited, DHLZ and British America Tobacco (Zimbabwe).
Market analysts expect that the strong rally at the close of last year would be maintained this year as the global economic outlook improves.
Analysts also contend that foreign buyers, generally hesitant globally prior to a plebiscite, would continue driving trades on the ZSE as in the past year when they accounted for 41 percent of ZSE’s turnover from 13 percent in 2011.
However, there is huge value gap between the best counter and the least performing.
On Friday, Econet Wireless’ share price was $545.01 while Apex was on $0.01.
The Nigerian Stock Exchange is rated second, having gained 13.87% while South Africa’s FTSE/JSE Africa All-Share Index had only managed 3.67% r to date.
Nairobi Securities Exchange Ltd All-Share Index gained 9.11%, Mauritius Stock Exchange SEMDEX Index ended the month on 4.15%.
Outside of Africa, the FTSE 100 Index had 7.06% by the close of January and Dow Jones Industrial was on 5.77%.
Investment analysts in Zimbabwe recommend heavyweight counters but have divergent views when it comes to the counters, which will grow in the mid-tier to penny stock sections.
Delta has maintained a dominant position in all the markets where it has a footprint.